The Charlottesville City Council met Tuesday to consider a report on the status of the Landmark Hotel on the Downtown Mall — a structure that has remained unfinished since construction came to a halt in January 2009.
Charlottesville Director of Economic Development Chris Engel presented a report to Council on a proposed agreement with Dewberry Capital, the current owner of the hotel property.
Engel said the half-built structure has been “an eyesore and a safety concern” for members of the Charlottesville community.
Engel further outlined the parameters of a potential agreement between the city of Charlottesville and Dewberry Capital. The agreement included a predefined construction completion timeline and the allocation of funds by the City. The report also proposed a solution to the parking situation and set a definitive conclusion date for the construction.
Councilor Bob Fenwick asked Engel to provide a rough timeline for the project. Though he was reluctant to speak on behalf of the developers, Engel said the construction would adhere as closely as possible to the agreed-upon completion date.
Councilor Kristin Szakos also said she was concerned about city funding for the project in case Dewberry Capital failed to meet the construction deadline. If Dewberry Capital fails to meet the construction deadline, it could result in an almost indefinite allocation of funds by the city, which would decrease by only one percent per month after the deadline.
Currently, the estimated grant amount the city would fund is approximately $110,000 annually over 10 years, or $1.1 million. The funding would be 50 percent of incremental real estate tax the hotel would generate.
In response to this concern, Councilor Kathy Galvin and Mayor Mike Signer proposed a two percent decline in funding after the project deadline in order to prevent it from becoming a long-term burden upon the city.
“This agreement would not simply be a gift to Dewberry,” Galvin said.
Signer said he believed the hotel could bring “dynamism and dollars” to the Downtown Mall. While he said he supported the project, he also said it must be carried out conservatively in order to ensure the project does not stall again and result in a lost investment for taxpayers and the city alike.
“We want action sooner rather than later. We want there to be a benefit to taxpayers, to Charlottesville,” Signer said.
The staff report presented to Council noted that once the hotel is operational, it could generate $800,000 to $950,000 in tax revenue for the city annually.
Szakos, however, said she objected to financially aiding a company that had failed to cooperate with the city in the past.
“Even though it’s unpleasant, we could get by without making this investment,” Szakos said. “I do worry about the precedent this would set.”
After a lengthy discussion that exceeded the original 30 minute time slot, the final decision regarding the Landmark Hotel was postponed until the next city council meeting, pending further negotiations concerning the long-term funding of the project.
Read More
17 Society paints over Beta Bridge memorial to Nov. 13 shooting victims
By Finn Trainer | 1 hours agoIn response to the decision to paint over the original memorial, multiple members of the University community took to Beta Bridge late Thursday afternoon to paint another memorial.
New School of Data Science building advances interdisciplinary, data-driven work
By Lexie Stadler | 5 hours agoEmma Candelier, director of communications for the SDS, said that the building provides a distinct collaborative space to data science students for the first time.
Honor Committee plans Dorm Talks and finals week initiatives
By Lexie Stadler | 2 days agoIn an effort to enhance student outreach and introduce incoming students to the Honor System, the Committee will reintroduce Dorm Talks in the Fall 2024 semester.
